● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The share is getting closer to its long-term support in weekly data, at EUR 1.02, which offers good timing for buyers.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.41 for the 2020 fiscal year.
● With a P/E ratio at 8.65 for the current year and 5.8 for next year, earnings multiples are highly attractive compared with competitors.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● The company does not generate enough profits, which is an alarming weak point.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● Analysts covering the stock have recently lowered their earnings forecast.
● The underlying tendency is negative on the weekly chart below the resistance at 1.52 EUR